Where Is the Best Place to Invest Your Money?

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Are you looking at a the recent declines in prices in real estate, stocks and other areas? Hi this is Roger Grow for Grow Asset Management. If you have extra money one of the things that you might be thinking about is “Where shall I put it?”

The big question with investing, as always is how long are you going to leave your money there? Are we talking a day, a year, ten years or fifty years? It will make a difference. If it’s a day just leave it in the money market fund and don’t fiddle with it. If it’s fifty years you can handle lots of ups and downs that are inherent in stock markets, buying high quality stocks with dividends would seem to be a good move. If you’re in the middle , let’s say in the five to ten range then maybe a blend of bonds to set up a foundation portfolio and then stocks as a smaller component to provide growth and perhaps some income through dividends. How much stock? It depends how old you are. Remember stocks do go on half on average once every ten years. You do the math, if you have 100% of your portfolio in stock and it goes in half you are going to have a 50% loss. Can you handle that? So you can adjust that percent depending upon how much risk you can handle.

Other than stocks what about real estate? Do you own your own house? There are many homes now for sale in the hundred to two hundred thousand range and it might be cheaper not to buy than to rent. And if your time frame is twenty years, or thirty or forty or fifty years you’re likely to make money on that investment, plus you own your own home. I hope that helps, I’m Roger Grow from grow Asset, thank you very much for spending time with me.